The debtor is listed as Skip Barber Racing School LLC, of Amenia, New York. Assets are, the filing claims, between $1 million and $10 million, and liabilities are between $10 million and $50 million.

In a conversation with Autoweek, Skip Barber CEO Michael Culver stressed the importance of the school's decision to file Chapter 11 bankruptcy, which allows for business operations to continue during the proceedings, rather than go the Chapter 7 route and liquidate its assets. He sees the bankruptcy process as "an opportunity for us to clean up the balance sheets," citing the school's substantial debt load, combined with high fixed costs -- especially the high cost of track rentals -- as factors hindering its ability to achieve consistent profitability.

"We're selling every seat we have -- problem is, we don't have enough seats," he says.

According to TheDrive.com, Lime Rock Park in Connecticut, which was the school’s home track until it moved to Road Atlanta, is the largest creditor, claiming a debt of $1.225 million in back rent. Several other tracks are creditors, including Road Atlanta, claiming a debt of nearly $240,000.

TheDrive.com reports that among the school’s assets are $1,489,500 worth of cars and $1.6 million in auto parts. It also claims the Skip Barber Racing School’s name and training methods are worth $2 million.

Barber’s cars are mostly Formula Skip Barber open-wheel racers, which may wear a Mazda sticker but are powered by Dodge Neon engines, and Mazda MX-5 Miatas. Barber has long been associated with Mazda, but that formal relationship ended two years ago. The school’s website -- which does not mention the bankruptcy and is still advertising future dates for its traveling instruction -- claims that it has “150 race cars, 60 street cars, 30 transport and support vehicles.”

The school, which recently celebrated its 40th anniversary, was founded by Skip Barber, now 80. He was an accomplished racer who won several SCCA Runoff titles and competed in Formula 1 for two years. Barber bought Lime Rock Park with five partners in 1983 and now owns the track outright. He sold Skip Barber Racing School to a group of investors in 1999.

Culver, a former sports-car racer and investment banker, is the CEO and chairman of the board of the Skip Barber Racing School. Barber, like all racing schools, was hit hard in the recession of 2008 and beyond -- when you are looking to make cuts in your budget, it may be hard to justify spending $3,995, which is what Barber’s standard three-day racing school costs.

Since then, Barber has struggled to make a comeback, cutting staff as part of the 2011 move of its headquarters from Lime Rock to Road Atlanta.

Barber’s school and its own multiple racing series have launched the careers of dozens of now-notables. The school uses a quote from actor Patrick Dempsey on its website: “Then a gift from my wife and family greatly changed the direction to the next chapter of my life: a three-day course at the Skip Barber Racing School.”

Another testimonial came from Mario Andretti: “When it was time for my kids to go to racing school, we did a lot of research. I believe that they got the most out of the Skip Barber Racing School because the training quality and equipment used is superior and very consistent.”

And to the thousands of graduates, veteran Barber instructors like Terry Earwood and Bruce MacInnes honed the school’s curriculum to perfection, managing to teach and entertain at once. For many of those graduates, attending the Skip Barber Racing School was a genuinely memorable experience.

What will come after the bankruptcy process? Ideally, CEO Culver tells Autoweek, a quick sale and the continuation of performance driving classes. "I think we'll have a huge amount of interest" once the school's books are cleared of debt, he says, adding that potential buyers have already expressed interest.

Post-Chapter 11, "the management will be more focused on running the business rather than fighting fires" caused by the company's tenuous financial situation, Culver says. "A stronger, much better-capitalized business" should emerge from the ordeal -- one, Culver hopes, that will be better able to do justice to the Skip Barber name and brand.

Meanwhile, school operations continue; at least two of its currently scheduled programs, one at Carolina Motorsports Park, the other at Palm Beach International Raceway, will get underway later this week.

Can the Skip Barber Racing School come out of bankruptcy? Plenty of people in the motorsports industry that the school touched are hoping for a comeback. We might not have to wait long to find out: Culver says the school is aiming for a sale and/or change of control "within 60 days."

This content is created and maintained by a third party, and imported onto this page to help users provide their email addresses. You may be able to find more information about this and similar content at piano.io

This commenting section is created and maintained by a third party, and imported onto this page. You may be able to find more information on their web site.

A Part of Hearst Digital Media
Autoweek participates in various affiliate marketing programs, which means we may get paid commissions on editorially chosen products purchased through our links to retailer sites.